Published: Tuesday, March 26, 2013 at 1:00 a.m.

Last Modified: Monday, March 25, 2013 at 7:38 p.m.

Many are now irked to find out that the company's founder is once again loaning money, through a relatively new Sarasota business called Private Mortgages Inc.

Michael Christner, who has operated a series of non-traditional mortgage lending services locally for more than 30 years, is able to do this because despite owing 88 creditors a little more than $6 million, he is not liable for the debt personally because it was raised — and subsequently discharged — through his company, Money Consultants.

Money Consultants, which incorporated in 1979 and operated from offices on Beneva Road, sought to liquidate in the aftermath of Southwest Florida's housing market implosion six years ago. Christner and his business continue to navigate bankruptcy court.

Money Consultants left a money trail of unsecured creditors who had provided the business with cash to, in turn, lend out to others in return for yield.

“We trusted him, and we lost everything,” said Ilona Mitchell, who invested nearly $500,000 with Christner's firm.

The company reported income of $690,634 in 2008 and $200,428 in 2009, court records show.

Christner maintains the Money Consultants' losses were purely the result of the Great Recession, and that he did not mishandle funds.

But now, with the region's residential market rebounding and banks and insurers still balking at cutting new debt, lenders like Christner's new Private Mortgages are again finding themselves in great demand.

State records show Christner began operating as Private Mortgages on Jan. 1, 2012.

Mitchell and her late husband began investing with Christner a decade ago, betting on a real estate industry that was, at the time, rising to historic heights. She even took out a home equity loan to fund Christner's efforts.

The 62-year-old court worker said Christner repaid her investments faithfully until late 2009, when he stopped writing her checks and quit responding to her.

Christner said he did everything he could to satisfy investors like Mitchell.

He says he even stopped taking a salary when times got tough.

Money Consultants was merely a victim of a housing crash that took down even old-line real estate-related companies when home values plummeted by 40 percent to 60 percent across Southwest Florida, Christner said.

He compared his situation with that of the American auto industry. Detroit auto-making giants General Motors and Chrysler sought bankruptcy protection, he notes, and used taxpayer dollars to restructure their operations so they could emerge and build cars again.

“I understand their displeasure, I have my own,” Christner said of investors like Mitchell. “For 30 years, we made a lot of money and never had a complaint. Then, as the market turned and as values of properties dropped, we just couldn't keep up with it.”

Christner said he even propped up Money Consultants with his own cash.

“I pulled seven figures out of my personal account to make (investor) payments until I had no money left,” he said.

But that apparently has not satisfied many investors or customers.

There have been 13 consumer complaints filed with the state against Money Consultants, and another filed against Christner, records show.

The Florida Office of Financial Regulation twice sanctioned the company during its years of operation, with a notice of non-compliance — a warning regarding minor infractions — and a stricter letter of admonishment, public records show.

A customer's story Kingsley Jackson was a Money Consultants' customer who wanted to open a Caribbean restaurant on Tamiami Trail in Port Charlotte.

He was referred to Christner by a family member.

The 56-year-old North Port man put $90,000 of his savings toward the enterprise, and another $85,000 toward improvements to the restaurant's building.

But a botched promissory note and errors in title paperwork left him with few entitlements to the property, even after he paid off the debt, according to Charlotte County court records.

Jackson has since lost his restaurant, and he blames Christner.

“I signed papers, gave him my money, paid him and then never heard from them until after they went bankrupt,” Jackson said.

<p><em>SARASOTA</em> - Investors lost millions of dollars when local mortgage lender Money Consultants Inc. filed for Chapter 7 bankruptcy in 2010.</p><p>Many are now irked to find out that the company's founder is once again loaning money, through a relatively new Sarasota business called Private Mortgages Inc.</p><p>Michael Christner, who has operated a series of non-traditional mortgage lending services locally for more than 30 years, is able to do this because despite owing 88 creditors a little more than $6 million, he is not liable for the debt personally because it was raised — and subsequently discharged — through his company, Money Consultants.</p><p>Money Consultants, which incorporated in 1979 and operated from offices on Beneva Road, sought to liquidate in the aftermath of Southwest Florida's housing market implosion six years ago. Christner and his business continue to navigate bankruptcy court.</p><p>Money Consultants left a money trail of unsecured creditors who had provided the business with cash to, in turn, lend out to others in return for yield.</p><p>“We trusted him, and we lost everything,” said Ilona Mitchell, who invested nearly $500,000 with Christner's firm.</p><p>The company reported income of $690,634 in 2008 and $200,428 in 2009, court records show.</p><p>Christner maintains the Money Consultants' losses were purely the result of the Great Recession, and that he did not mishandle funds.</p><p>But now, with the region's residential market rebounding and banks and insurers still balking at cutting new debt, lenders like Christner's new Private Mortgages are again finding themselves in great demand.</p><p>State records show Christner began operating as Private Mortgages on Jan. 1, 2012.</p><p>Mitchell and her late husband began investing with Christner a decade ago, betting on a real estate industry that was, at the time, rising to historic heights. She even took out a home equity loan to fund Christner's efforts.</p><p>The 62-year-old court worker said Christner repaid her investments faithfully until late 2009, when he stopped writing her checks and quit responding to her.</p><p>Mitchell was ultimately awarded only $13,000 in Money Consultants' bankruptcy case.</p><p>She has had to put her planned retirement on hold.</p><p><span style='font-size:1.1em;'>'I understand their displeasure'</span></b></p><p>Christner said he did everything he could to satisfy investors like Mitchell. </p><p>He says he even stopped taking a salary when times got tough.</p><p>Money Consultants was merely a victim of a housing crash that took down even old-line real estate-related companies when home values plummeted by 40 percent to 60 percent across Southwest Florida, Christner said.</p><p>He compared his situation with that of the American auto industry. Detroit auto-making giants General Motors and Chrysler sought bankruptcy protection, he notes, and used taxpayer dollars to restructure their operations so they could emerge and build cars again.</p><p>“I understand their displeasure, I have my own,” Christner said of investors like Mitchell. “For 30 years, we made a lot of money and never had a complaint. Then, as the market turned and as values of properties dropped, we just couldn't keep up with it.”</p><p>Christner said he even propped up Money Consultants with his own cash.</p><p>“I pulled seven figures out of my personal account to make (investor) payments until I had no money left,” he said.</p><p>But that apparently has not satisfied many investors or customers.</p><p>There have been 13 consumer complaints filed with the state against Money Consultants, and another filed against Christner, records show. </p><p>The Florida Office of Financial Regulation twice sanctioned the company during its years of operation, with a notice of non-compliance — a warning regarding minor infractions — and a stricter letter of admonishment, public records show.</p><p><span style='font-size:1.1em;'>A customer's story Kingsley Jackson was a Money Consultants' customer who wanted to open a Caribbean restaurant on Tamiami Trail in Port Charlotte. </p><p>He was referred to Christner by a family member.</span></b></p><p>The 56-year-old North Port man put $90,000 of his savings toward the enterprise, and another $85,000 toward improvements to the restaurant's building.</p><p>But a botched promissory note and errors in title paperwork left him with few entitlements to the property, even after he paid off the debt, <!---->according to Charlotte County court records.<!----></p><p>Jackson has since lost his restaurant, and he blames Christner. </p><p>“I signed papers, gave him my money, paid him and then never heard from them until after they went bankrupt,” Jackson said.</p>